Asian Session Snap shot 15-06-09

The USD was firmer in the Asian session, as broader macro events have dampened risk appetite. The EURUSD was range bound between 1.4033 and 1.3920, while the USDJPY was in a range of 98.55 and 98.10. Over the weekend, in response to UN sanctions, N. Korea responded by saying that they will move towards enriching plutonium and uranium for military usage. The G8 finance ministers meeting wrapped up with no real surprises. Ministers began the discussion on existing strategies and asked the IMF to research options to lower budget deficits and unwind governments positions in the financial sector. Perhaps most notably what the fact the G8 was unified in stating that it was too early for emergence measure to be scaled back. Tomorrow's BRICS conference will have markets watching for any signal on USD, although recent evidence points to a pullback on anti-USD rhetoric. Russia's Finance Minister, Kudrin, commented that he has confidence in the USD and that it is too early for an alternative to the USD as the global reserve currency. While an article in the China Post suggest that specific results might be difficult to achieve, due to the wide differences. While the developments in Iran are of some interest we dont expect the final out come to have significant effect on FX markets.

Another topic which the markets are discussing is the current call by the US and IMF for European to conduct banking sector 'stress tests'. In principle, EU officials have agreed, but recent comments by French Finance Minister Lagarde noted that discussions were ongoing within the EU as to whether to do it on a consolidated basis or at an individual country level. In laymen terms, the market will have to wait.

On the docket today, the empire manufacturing survey and TIC figures for June will be released. In adiditon markets will be on the lookout for comments on the greenbacks infront of the BRIC conference.